Linchpin Capital, the parent company of Beacon Group and Libertas Financial Planning, has appointed solicitors and will defend what it labels “disappointing” ASIC court action.
Emails seen by ifa show that Linchpin Capital intends to dispute ASIC allegations made on Monday, 2 July that it is running two managed investment schemes without being appropriately licensed to do so.
ASIC is seeking court orders to wind up both of the investment schemes as well as Linchpin Capital and Endeavour Securities (which is also involved in the running of the schemes).
The matter is set to be heard in the Federal Court in Brisbane on 24 July.
Internal emails from Beacon Group managing director Peter Daly show Linchpin management were “shocked” by ASIC’s announcement, which came only one hour after the business received notice of the action.
“It is exceptionally disappointing and does not reflect our past professional experience in dealing with ASIC, which was measured and collaborative,” said Mr Daly.
According to the emails, ASIC notified Linchpin that it wished to commence a "routine surveillance" on 26 October 2017. This was followed by the issuance of an official notification about the ASIC surveillance to Linchpin authorised representatives, staff and related parties.
Linchpin's directors were informed of the ASIC notice of court action at 3pm on Monday, 2 July, and the ASIC media release was issued at "approximately 4pm", said Mr Daly.
"Having made considerable effort to provide ASIC with everything they demanded we don’t understand why they have taken this approach," said Mr Daly in the email to advisers.
"Solicitors have been appointed whom are working through the detail and we will provide you with a summary of their feedback once that is available," he said.
"Unfortunately we are now subject to trial by media and regrettably guilty until proven innocent. Over the coming days and weeks we will be tested and I encourage you to maintain your support while we fight the allegations."
Last month, ifa reported that Linchpin Capital intended to list on the ASX following a merger with fund manager AD Capital.
AI will enable clients to be more self-sufficient in seeking advice and sourcing finance, allowing advisers to transition into financial strategists,...
Calls have been recently made for the advice and accounting sector to come together.
Finfluencers are increasing the need for advisers to find their voice and to establish themselves as leaders in a highly competitive industry. How can...
Get the latest news! Subscribe to the ifa bulletin
Get notifications in real time and stay up to date with content that matters to you.